"About 20% of the cash underpinning UK house purchases is coming from pension funds and debt investors around the world."
The deal is one of the first residential mortgage-backed securitisations (RMBS) to be successfully sold to investors since the onset of the Covid-19 pandemic.
The securities were bought by a mix of global institutional investors who have an established track record of acquiring Kensington’s securities.
The transaction will raise £400 million of funding for the Group to continue to support complex and underserved borrowers to get on the property ladder.
Alex Maddox, capital markets director at Kensington Mortgages, said: “The global financial markets are a hugely important source of funds for the UK housing market. While everyone assumes that the flow of money supporting British housing is all about the big banks, that’s not been true for many years. About 20% of the cash underpinning UK house purchases is coming from pension funds and debt investors around the world.
“At the start of the Covid-19 pandemic, the Bank of England was quick to ensure that funding was made available to banks and building societies so they could keep lending – which was welcome. With wholesale markets reopening, non-bank lenders such as ourselves can play a more active role in the market again, and help more people towards a house purchase.”
